The contract was established after CN and the TCRC failed to negotiate a settlement during discussions, prompting the Canada Industrial Relations Board to intervene and refer the matter to binding arbitration in August 2024, following a brief lockout.

In his ruling, Kaplan urged both parties to address their disagreements regarding proposed changes to work rules.

He noted that both the railway and the union put forth detailed proposals, each perceiving their own as necessary while rejecting the other’s as unreasonable. Kaplan highlighted the need for both sides to focus on critical issues such as employee rest and availability, suggesting that these matters are best resolved through collaborative negotiations rather than arbitration.

Union leaders informed their members that they did not seek binding arbitration as their primary goal in these negotiations.

While acknowledging that the outcome was not what they had hoped for, the union’s leadership emphasized that the ruling did not include the major concessions CN had sought. They expressed ongoing concerns about the company’s demands, which they found unacceptable throughout the negotiation process.

In response, CN expressed disappointment at the lack of a negotiated settlement but maintained a commitment to progress. “Although we regret that an agreement was not reached through negotiation, we are focused on moving forward and modernizing the collective agreement for the benefit of our employees and the broader economy,” the company stated.

Additionally, the contract between Canadian Pacific Kansas City and the TCRC has also been submitted for arbitration, with a decision on that front still awaited.

Trump’s implementation of a 25% tariff on imported vehicles has compelled several manufacturers to either shut down production facilities or offer substantial discounts to keep customers satisfied. Nissan is currently reviewing its production and supply chain operations to identify the most efficient and sustainable strategies moving forward. The company noted that it has ample inventory available at its U.S. dealerships that is not affected by the new tariffs.

The decline in Class 8 truck orders signals a cautious approach among trucking companies, reflecting concerns over rising operational costs and market volatility. This hesitance to invest in new equipment could lead to challenges in meeting future demand, potentially straining capacity in the industry. As fleets prioritize financial stability over expansion, the trucking sector may face increased pressure to optimize existing resources and improve operational efficiencies. The current trend underscores the importance of strategic planning and adaptability in navigating the evolving landscape of freight transportation.